AMKU fines Kyivstar for internet speed advertising
The Antimonopoly Committee of Ukraine fined the mobile operator Kyivstar 17.5 million hryvnias for disseminating inaccurate information in advertising. AMKU head Pavlo Kyrylenko reported this.
The violation concerned the advertising claim "No. 1 in mobile internet speed". The committee determined that the manner in which this message was presented could mislead consumers into an erroneous perception of the operator's unconditional leadership in data transfer speed.
The advertising also contained information about the research source, measurement periods, and the average results achieved. However, this information was placed in such a way that it was difficult for consumers to perceive it simultaneously with the main claim about Kyivstar's first place.
Thus, the advertising thesis regarding the company's leadership was not accompanied by a sufficiently prominent and understandable explanation of the conditions under which the corresponding results were obtained.
The AMKU recognized Kyivstar's actions as a violation of Article 15-1 of the Law of Ukraine "On Protection against Unfair Competition." This article prohibits the dissemination of incomplete, inaccurate, or false information that may influence consumer decisions and create advantages for a company over competitors.
As a result of the case review, a fine of 17.5 million hryvnias was imposed on the operator. The AMKU's announcement does not specify for how long the disputed advertising was disseminated or on which specific platforms it was placed.
At the same meeting, the Antimonopoly Committee made a number of other decisions. In particular, several companies operating in the fuel market received recommendations to eliminate signs of anticompetitive concerted practices.
The AMKU established that the participants entered into partnership agreements that allowed the use of fuel cards at the gas stations of other companies. However, certain conditions forbade the use of such agreements and the purchased fuel for participation in public procurements without the partner's consent.
The Committee demanded the removal of the relevant provisions from the contracts and the exclusion of similar restrictions in future agreements.
Furthermore, the company Kaon V Fund was fined 170,000 hryvnias, and Pharma-City nearly 720,000 hryvnias for conducting concentrations without AMKU permission. The company Center of Tools received a fine of 65,000 hryvnias for late submission of information to the Committee.
Based on materials from: Pavlo Kyrylenko